Fortis Healthcare falls on board nod to demerge hospital biz into Manipal

The stock dipped 10% to Rs 128, extending its Tuesday's 4% decline , after the company said that it has decided to demerge hospital business into Manipal Hospitals.

Fortis Healthcare has dipped 10% to Rs 128, extending its Tuesday’s 4% decline on the BSE, after the company said that it has decided to demerge hospital business into Manipal Hospitals, promoted by Dr Ranjan Pai and backed by TPG.

Fortis Healthcare shareholders will receive 10.83 shares of Manipal Hospitals for every 100 shares held in the company. Due to this deal, Manipal Hospitals will also get listed on the bourses.

The Board has also approved sale of its 20% stake in SRL to Manipal Hospitals. The remaining Fortis Healthcare will be an investment holding company with 36.6%